Now, open a special savings account for your next holiday

Thomas Cook is allowing travellers to open a separate account for their big vacation a year later, for which they'll get interest as well as be protected against price hikes

Ever thought of a dedicated savings account for your next big holiday? If you change your mind and do not take a holiday you still earn an interest. Thousands of people have opened such an account with different banks in last one year to go on a vacation with Thomas Cook.

The BSE listed travel company has partnered with banks like SBI, ICICI, Kotak Mahindra and Indusind Bank to attract holiday lovers. “Not everyone is able to fork out money at a time to go on a holiday. But holiday is becoming a necessity for increasing number of people. So, we came up with inflation proof holiday packages that can be used after 13 months”, said Abraham Alapatt, chief innovation officer and head (marketing and service quality), Thomas Cook India.

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Thomas Cook has succeeded in opening accounts with a total of 18,000 passengers. The number of accounts would be smaller as an account usually means multiple travellers of one family or a group. The cost of a holiday is split into thirteen monthly instalments but the account holder is required to pay the first twelve instalments. The thirteenth instalment comes from the interest earned from the account and a top up from Thomas Cook. If the account holder changes his or her mind and decides not to go on a holiday at the end of twelve months, the money and interest can be put to any other use. In such a case, no top up is made by Thomas Cook.

The holiday package is all inclusive and takes care of return airfare, transfers, accommodation, all meals, sightseeing and taxes. But what happens if the cost of one or more component of the trip goes up due to an increase in airfare or the foreign exchange rate? “We take the risk of any increase. The package is inflation proof for the buyer,” claims Alapatt. A few such initial account holders have taken their trip already. India had the concept of equated monthly instalments or EMIs for holidays for some time now but the savings account concept for a holiday is new.

Thomas Cook is not looking to tie up with more such banks. “These banks are present across the nation. If any bank is keen we can consider”. The company is seeing a high interest for such packages from salaried class, especially young couple with kids. It has set up a call centre to push sales and promote the concept.